OPTIMAL ORDERING POLICY FOR A DETERIORATING ITEM WITH IMPERFECT QUALITY AND PARTIAL BACKORDERING

Jonas C.P. Yu · Hui‐Ming Wee · Jen‐Ming Chen

41 citations0/0 files storedJournal of the Chinese Institute of Industrial Engineers

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Supply Chain and Inventory Management Reliability and Maintenance Optimization Sustainable Supply Chain Management

Abstract

This study develops a production-inventory model considering a deteriorating item with imperfect quality and partial backordering. Such implicit assumptions are reasonable in view of the fact that poor-quality items do exist during production. Defective items are usually picked up during the screening process. Shortages are partially backordered since not all customers are willing to wait for new replenishments of stocks. The impatient customer will result in lost sale. The analysis shows that our model is a generalization of the models in current literatures. Also, a lower bound on the back-ordered ratio is obtained to ensure concave of the net expected profit function. An algorithm and numerical analysis are used to illustrate the solution procedure. Computational results indicate that our model leads to more realistic results.

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1964Analysis of Inventory Systems.1983Production and inventory management 2017Journal of Industrial Engineering 1986Optimal Lot Sizing, Process Quality Improvement and Setup Cost Reduction 2000Economic production quantity model for items with imperfect quality 1986Economic Production Cycles with Imperfect Production Processes 1973An EOQ Model for Items with Weibull Distribution Deterioration 1963A model for an exponentially decaying inventory

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2014Three-layer supply chain in an imperfect production inventory model with two storage facilities under fuzzy rough environment 2015EOQ model for imperfect quality items with partial backorders and screening constraint 2017Two layers supply chain in an imperfect production inventory model with two storage facilities under reliability consideration 2018Economic production quantity model considering warm-up period in a cleaner production environment 2020Optimal reorder level and lot size decisions for an inventory system with defective items

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